Paragon expands partnership with Otto Car with £1.3m funding

Paragon SME Lending has expanded its partnership with private-hire fleet operator Otto Car after increasing its funding facility to £3 million, supporting the next phase of the company’s low-emission vehicle expansion in London.

The latest tranche of funding, a £1.3 million facility, will enable Otto Car to add 50 vehicles to its fleet. These include 25 fully electric Toyota BZ4X models and 25 Toyota Corolla hybrid vehicles, as the business continues to shift towards lower-emission transport options for private-hire drivers operating in the capital.

The partnership is underpinned by Paragon’s pay-per-use funding model, delivered through emissions-tracking fintech Zeti. Zeti’s technology provides real-time data on vehicle usage, emissions, asset condition and utilisation, allowing funding repayments to be aligned with how the vehicles are actually used. The structure is designed to offer greater flexibility for Otto Car while giving Paragon enhanced visibility of environmental performance.

Otto Car supplies vehicles to drivers operating across platforms including Uber, Free Now and Bolt. The expanded funding is expected to support the company’s decarbonisation strategy and contribute to improved air quality across London.

Gurinder Dhillon, managing director at Otto Car, said: “Paragon’s ongoing support has been instrumental in driving our shift towards hybrid and fully electric vehicles. This expanded facility enables us to continue investing in cleaner transport for London’s private‑hire drivers, supported by Zeti’s smart technology and Paragon’s genuinely innovative funding structures.”

Matt Bass, head of specialist finance at Paragon Bank, noted: “This partnership showcases how data‑driven funding can accelerate decarbonisation across a business’s operations. Increasing our facility to £3 million supports Otto Car’s fleet expansion and aligns with Paragon’s commitment to helping UK SMEs operate more sustainably. The pay‑per‑use model gives Otto flexibility, transparency and efficiency, and we’re proud to continue backing the company’s growth.”

“The combination of our real‑time technology and Paragon’s flexible pay‑per‑use financing makes for a powerful model for scaling clean transport,” said Dave Kennon, commercial director at Zeti. “We have ambitious plans to expand our work in this area with Paragon and are excited for the journey ahead.”